Recent Insider Transactions • Oct 27
Independent Chairman recently bought kr1.0m worth of stock On the 22nd of October, Martin Roos bought around 143k shares on-market at roughly kr7.00 per share. This transaction amounted to 28% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Martin has been a buyer over the last 12 months, purchasing a net total of kr1.6m worth in shares. New Risk • Sep 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Share price has been highly volatile over the past 3 months (16% average weekly change). Minor Risks Shareholders have been diluted in the past year (21% increase in shares outstanding). Market cap is less than US$100m (kr107.5m market cap, or US$10.6m). Recent Insider Transactions • Jul 31
Independent Chairman recently bought kr105k worth of stock On the 29th of July, Martin Roos bought around 18k shares on-market at roughly kr6.01 per share. This transaction amounted to 3.6% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Martin has been a buyer over the last 12 months, purchasing a net total of kr963k worth in shares. Recent Insider Transactions • May 26
Independent Chairman recently bought kr71k worth of stock On the 22nd of May, Martin Roos bought around 11k shares on-market at roughly kr6.48 per share. This transaction amounted to 2.4% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Martin has been a buyer over the last 12 months, purchasing a net total of kr742k worth in shares. Board Change • May 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. Independent Director Morten Sorby was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. New Risk • Apr 10
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Swedish stocks, typically moving 13% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr33m free cash flow). Share price has been highly volatile over the past 3 months (13% average weekly change). Minor Risks Shareholders have been diluted in the past year (48% increase in shares outstanding). Market cap is less than US$100m (kr117.5m market cap, or US$11.0m). New Risk • Apr 07
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr102.1m (US$9.59m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr33m free cash flow). Market cap is less than US$10m (kr102.1m market cap, or US$9.59m). Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Shareholders have been diluted in the past year (48% increase in shares outstanding). Recent Insider Transactions • Feb 25
Independent Chairman recently bought kr53k worth of stock On the 22nd of February, Martin Roos bought around 7k shares on-market at roughly kr7.47 per share. This transaction amounted to 1.7% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Martin has been a buyer over the last 12 months, purchasing a net total of kr826k worth in shares. New Risk • Feb 01
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr102.1m (US$9.80m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr36m free cash flow). Market cap is less than US$10m (kr102.1m market cap, or US$9.80m). Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Shareholders have been diluted in the past year (48% increase in shares outstanding). New Risk • Dec 12
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr103.6m (US$9.91m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr36m free cash flow). Share price has been highly volatile over the past 3 months (14% average weekly change). Market cap is less than US$10m (kr103.6m market cap, or US$9.91m). Minor Risk Shareholders have been diluted in the past year (48% increase in shares outstanding). Reported Earnings • Oct 22
Third quarter 2023 earnings: Revenues miss analyst expectations Third quarter 2023 results: Revenue: kr73.4m (down 3.4% from 3Q 2022). Net loss: kr8.31m (down kr8.45m from profit in 3Q 2022). Revenue missed analyst estimates by 7.0%. Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Software industry in Sweden. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 91 percentage points per year, which is a significant difference in performance. Recent Insider Transactions • Oct 02
Independent Chairman recently bought kr500k worth of stock On the 28th of September, Martin Roos bought around 66k shares on-market at roughly kr7.55 per share. This transaction amounted to 20% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Martin has been a buyer over the last 12 months, purchasing a net total of kr658k worth in shares. Announcement • Sep 29
Seamless Distribution Systems AB (publ) has completed a Follow-on Equity Offering in the amount of SEK 20.00001 million. Seamless Distribution Systems AB (publ) has completed a Follow-on Equity Offering in the amount of SEK 20.00001 million.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 2,649,008
Price\Range: SEK 7.55
Transaction Features: Subsequent Direct Listing New Risk • Aug 29
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -kr24m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr24m free cash flow). Share price has been highly volatile over the past 3 months (14% average weekly change). Market cap is less than US$10m (kr101.0m market cap, or US$9.25m). Minor Risk Shareholders have been diluted in the past year (22% increase in shares outstanding). New Risk • Aug 02
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Swedish stocks, typically moving 13% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Market cap is less than US$10m (kr103.0m market cap, or US$9.60m). Minor Risks Less than 1 year of cash runway based on current free cash flow (-kr24m). Shareholders have been diluted in the past year (22% increase in shares outstanding). Reported Earnings • Jul 23
Second quarter 2023 earnings: Revenues exceed analyst expectations Second quarter 2023 results: Revenue: kr80.1m (up 16% from 2Q 2022). Net income: kr106.0k (up kr1.88m from 2Q 2022). Profit margin: 0.1% (up from net loss in 2Q 2022). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 7.0%. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Software industry in Sweden. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 109 percentage points per year, which is a significant difference in performance. Reported Earnings • May 21
First quarter 2023 earnings: Revenues exceed analyst expectations First quarter 2023 results: Revenue: kr70.9m (up 13% from 1Q 2022). Net loss: kr4.80m (loss narrowed 40% from 1Q 2022). Revenue exceeded analyst estimates by 10%. Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Software industry in Sweden. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 104 percentage points per year, which is a significant difference in performance. Announcement • May 12
Seamless Distribution Systems Announces CEO Changes Seamless Distribution Systems announced that Eddy Cojulun has been appointed as the company's new CEO. Eddy has more than 25 years of experience in technology and telecom, among other things, as an entrepreneur who has started, built, and sold telecom-focused software companies, including ICON Americas which was sold to Ericsson in 2015. Eddy has also worked as a CIO at Telefonica in El Salvador and as a global head of sales and delivery of IT software development at Ericsson. In recent years, Eddy has served as a Chief Sales Officer at Envirotainer until the company was successfully sold new owners after a period of strong growth. Eddy will assume his new position on June 1, 2023. Eddy takes over from Martin Schedin, who is stepping down after one year of service as interim CEO. Martin will continue in his role as CFO of the company, which he has held concurrently with the interim CEO role for one year. Recent Insider Transactions • Apr 09
Independent Director recently bought kr821k worth of stock On the 6th of April, Martin Roos bought around 95k shares on-market at roughly kr8.62 per share. This transaction amounted to 27% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr1.3m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Mar 29
Independent Director recently bought kr525k worth of stock On the 24th of March, Martin Roos bought around 5k shares on-market at roughly kr105 per share. This transaction amounted to 1.5% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr949k more in shares than they have sold in the last 12 months. Major Estimate Revision • Mar 04
Consensus revenue estimates fall by 12% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from kr309.0m to kr272.0m. Forecast loss of -kr1.10, down from profit of kr0.60 per share profit previously. Software industry in Sweden expected to see average net income growth of 44% next year. Consensus price target down from kr52.00 to kr21.00. Share price rose 18% to kr8.88 over the past week. Announcement • Feb 09
Seamless Distribution Systems AB (publ) to Report Fiscal Year 2022 Results on Feb 28, 2023 Seamless Distribution Systems AB (publ) announced that they will report fiscal year 2022 results on Feb 28, 2023 Price Target Changed • Nov 16
Price target decreased to kr52.00 Down from kr58.00, the current price target is provided by 1 analyst. New target price is 142% above last closing price of kr21.50. Stock is down 56% over the past year. The company is forecast to post a net loss per share of kr0.80 compared to earnings per share of kr0.62 last year. Board Change • Nov 16
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. Independent Director Martin Roos is the most experienced director on the board, commencing their role in 2019. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 24
Third quarter 2022 earnings: Revenues exceed analyst expectations Third quarter 2022 results: Revenue: kr90.6m (up 15% from 3Q 2021). Net income: kr145.0k (down 92% from 3Q 2021). Profit margin: 0.2% (down from 2.4% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.8%. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 10.0% growth forecast for the IT industry in Sweden. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 56 percentage points per year, which is a significant difference in performance. Buying Opportunity • Oct 17
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 36%. The fair value is estimated to be kr27.23, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 3.3% in a year. Earnings is forecast to grow by 78% in the next year. Buying Opportunity • Aug 05
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 28%. The fair value is estimated to be kr32.36, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 3.3% in a year. Earnings is forecast to grow by 78% in the next year. Reported Earnings • Jul 22
Second quarter 2022 earnings: Revenues miss analyst expectations Second quarter 2022 results: Revenue: kr77.8m (up 13% from 2Q 2021). Net loss: kr1.77m (loss narrowed 63% from 2Q 2021). Revenue missed analyst estimates by 18%. Over the next year, revenue is forecast to grow 7.9%, compared to a 17% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Recent Insider Transactions • Jun 07
Independent Director recently bought kr222k worth of stock On the 3rd of June, Martin Roos bought around 7k shares on-market at roughly kr31.34 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr420k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Apr 30
Independent Director recently bought kr50k worth of stock On the 25th of April, Martin Roos bought around 1k shares on-market at roughly kr35.85 per share. In the last 3 months, there was an even bigger purchase from another insider worth kr88k. Insiders have collectively bought kr197k more in shares than they have sold in the last 12 months. Reported Earnings • Apr 27
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: kr0.80 loss per share (down from kr0.40 profit in 1Q 2021). Revenue: kr63.1m (up 2.6% from 1Q 2021). Net loss: kr7.93m (down 321% from profit in 1Q 2021). Revenue missed analyst estimates by 22%. Earnings per share (EPS) were also behind analyst expectations. Over the next year, revenue is forecast to grow 8.2%, compared to a 18% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Board Change • Apr 27
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. 2 independent directors (3 non-independent directors). Independent Director Martin Roos is the most experienced director on the board, commencing their role in 2019. Independent Director Pia Hofstedt was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Reported Earnings • Apr 22
First quarter 2022 earnings: Revenues miss analyst expectations First quarter 2022 results: Revenue: kr68.4m (up 11% from 1Q 2021). Net loss: kr7.93m (down 321% from profit in 1Q 2021). Revenue missed analyst estimates by 22%. Over the next year, revenue is forecast to grow 17%, compared to a 17% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 01
Investor sentiment improved over the past week After last week's 15% share price gain to kr41.50, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 22x in the IT industry in Sweden. Total returns to shareholders of 66% over the past three years. Major Estimate Revision • Feb 24
Consensus EPS estimates fall by 16% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from kr351.0m to kr332.0m. EPS estimate also fell from kr1.72 per share to kr1.45 per share. Net income forecast to grow 132% next year vs 16% growth forecast for IT industry in Sweden. Consensus price target down from kr80.00 to kr68.00. Share price fell 9.9% to kr36.95 over the past week. Recent Insider Transactions • Feb 19
Director recently bought kr88k worth of stock On the 17th of February, Johan Wilsby bought around 2k shares on-market at roughly kr44.00 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr5.4m more in shares than they have sold in the last 12 months. Reported Earnings • Feb 18
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: kr0.61 (down from kr1.50 in FY 2020). Revenue: kr303.4m (up 2.6% from FY 2020). Net income: kr6.02m (down 52% from FY 2020). Profit margin: 2.0% (down from 4.2% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 68%. Over the next year, revenue is forecast to grow 16%, compared to a 17% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Reported Earnings • Oct 22
Third quarter 2021 earnings released The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: kr81.5m (up 19% from 3Q 2020). Net income: kr1.86m (up 2.8% from 3Q 2020). Profit margin: 2.3% (down from 2.6% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has increased by 66% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Sep 22
Insider recently sold kr115k worth of stock On the 13th of September, Rutger Reman sold around 3k shares on-market at roughly kr46.15 per share. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought kr5.4m more than they sold in the last 12 months. Recent Insider Transactions • Aug 27
Independent Director recently bought kr174k worth of stock On the 24th of August, Pia Hofstedt bought around 4k shares on-market at roughly kr43.55 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr5.5m more in shares than they have sold in the last 12 months. Reported Earnings • Jul 23
Second quarter 2021 earnings released The company reported a soft second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: kr72.1m (up 1.6% from 2Q 2020). Net loss: kr4.84m (down 194% from profit in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 59% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 25
First quarter 2021 earnings released The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: kr64.5m (down 24% from 1Q 2020). Net income: kr3.59m (up 8.8% from 1Q 2020). Profit margin: 5.6% (up from 3.9% in 1Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 101% per year but the company’s share price has only increased by 67% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 19
Investor sentiment deteriorated over the past week After last week's 16% share price decline to kr48.60, the stock trades at a trailing P/E ratio of 32.4x. Average forward P/E is 20x in the IT industry in Sweden. Total returns to shareholders of 227% over the past three years. Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment improved over the past week After last week's 19% share price gain to kr55.40, the stock trades at a trailing P/E ratio of 36.9x. Average forward P/E is 20x in the IT industry in Sweden. Total returns to shareholders of 399% over the past three years. Recent Insider Transactions • Mar 22
Independent Director recently bought kr5.3m worth of stock On the 19th of March, Tomas Klevbo bought around 108k shares on-market at roughly kr49.16 per share. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment deteriorated over the past week After last week's 20% share price decline to kr36.80, the stock is trading at a trailing P/E ratio of 22.4x, down from the previous P/E ratio of 28.1x. This compares to an average P/E of 26x in the IT industry in Sweden. Total returns to shareholders over the past three years are 259%. Is New 90 Day High Low • Feb 22
New 90-day low: kr38.50 The company is down 23% from its price of kr49.70 on 24 November 2020. The Swedish market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 13% over the same period. Is New 90 Day High Low • Jan 18
New 90-day low: kr41.30 The company is down 36% from its price of kr64.80 on 20 October 2020. The Swedish market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 17% over the same period. Is New 90 Day High Low • Dec 30
New 90-day low: kr45.80 The company is down 14% from its price of kr53.00 on 01 October 2020. The Swedish market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 19% over the same period. Reported Earnings • Oct 24
Third quarter earnings released Over the last 12 months the company has reported total profits of kr13.2m, up 24% from the prior year. Total revenue was kr306.9m over the last 12 months, up 47% from the prior year. Valuation Update With 7 Day Price Move • Oct 14
Market bids up stock over the past week After last week's 23% share price gain to kr58.80, the stock is trading at a trailing P/E ratio of 30.8x, up from the previous P/E ratio of 25.1x. This compares to an average P/E of 26x in the IT industry in Sweden. Total returns to shareholders over the past three years are 218%. Is New 90 Day High Low • Oct 14
New 90-day high: kr58.80 The company is up 97% from its price of kr29.90 on 16 July 2020. The Swedish market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 20% over the same period. Is New 90 Day High Low • Sep 22
New 90-day high: kr51.00 The company is up 82% from its price of kr28.00 on 24 June 2020. The Swedish market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 29% over the same period.